tag:econsultancy.com,2008:/topics/payments Latest Payments content from Econsultancy 2017-04-26T12:24:21+01:00 tag:econsultancy.com,2008:BlogPost/69034 2017-04-26T12:24:21+01:00 2017-04-26T12:24:21+01:00 Amazon launches 'Subscribe with Amazon' to help companies sell subscriptions Patricio Robles <p>The <a href="https://www.subscribewithamazon.com/">marketplace</a>, which is said to have been in development for the past year, was born out of Amazon's homegrown subscription initiatives. "Over the years, Amazon has gained extensive experience in the memberships and subscriptions space, innovating across programs like Prime and Kindle Unlimited," Lovina McMurchy, the GM of Subscribe with Amazon, <a href="http://www.businesswire.com/news/home/20170424005365/en/Amazon-Launches-Self-Service-Marketplace-Subscription-Providers">explained</a> in a press release. </p> <p>Vendors interested in selling through Subscribe with Amazon have access to self-service tools that allow them to create detail pages for their offerings. An API allows vendors to receive order data and updates from Amazon so that they can automate the management of subscriptions. As one would expect, Amazon is giving vendors the ability to sell subscriptions with different terms, such as monthly and annual, and also allows them to offer introductory pricing to new subscribers.</p> <p>Initial Subscribe with Amazon partners include Disney Story Central, The Wall Street Journal and Dropbox. Currently, Subscribe with Amazon is accepting applications from vendors that sell digital content, but it would not be surprising to see Amazon later extend it to subscription services that offer physical products.</p> <p><img src="https://assets.econsultancy.com/images/0008/5680/subscribewithamazon.png" alt="" width="768" height="450"></p> <h4>Distribution, but at what cost?</h4> <p>Subscribe with Amazon's primary value proposition is that it offers subscription vendors a marketplace through which they can sell to Amazon's massive customer base. To help them sell, Amazon is even offering vendors the ability to create special promotions for Prime members, which are now estimated to number more than 65m.</p> <p>For example, one Subscribe with Amazon launch partner, Texture, offers a 50% discount to Prime members for the first six months of a subscription to its digital magazine service.</p> <p>In addition to helping vendors market their wares, Subscribe with Amazon could, <a href="https://econsultancy.com/blog/68792-amazon-payments-usage-grows-should-you-adopt-it/">like Pay with Amazon</a>, reduce purchase friction because it enables Amazon customers to purchase and manage subscriptions through their existing Amazon accounts, speeding the purchase process and reducing concerns about trust. Such concerns are often more pronounced in subscription purchases because charges are recurring. </p> <p>But despite the appealing aspects of Subscribe with Amazon, vendors will probably want to think carefully before they embrace Amazon's new offering.</p> <p>First, there's the issue of margin. Amazon takes a 30% cut of subscription revenue in the first year. That drops to 15% after the first year. While giving up 30% and then 15% might make sense for some vendors – it's in line with what other distribution channels charge – it might not make sense for others and vendors will want to do the math to determine the potential impact on the profitability of their business, especially if they consider that some Subscribe with Amazon subscriptions may displace some portion of subscriptions that would otherwise be sold direct.</p> <p>Second, there's the issue of data and customer ownership. While Amazon is giving vendors access to order data through an API, Subscribe with Amazon will obviously give the online retail giant the ability to collect significant data about its vendors. And it will own the relationships with customers who purchase using Subscribe with Amazon.</p> <p>Data and customer ownership is a thorny issue for vendors. After all, Amazon increasingly competes with companies that sell in its marketplaces. For example, it has launched its own private brands in categories ranging from apparel to electronics accessories. Some companies believe that Amazon <a href="https://econsultancy.com/blog/67769-the-rise-of-amazon-s-private-labels-shows-the-perils-of-not-owning-your-data-customers">has used its vast trove of sales data to identify products that its private labels should sell</a>.</p> <p>Given that Amazon already operates a number of digital subscription services of its own, the company's actions in other markets make it clear subscription vendors will have no choice but to consider that Subscribe with Amazon could eventually help the retail giant at their expense.</p> tag:econsultancy.com,2008:BlogPost/68977 2017-04-07T10:00:00+01:00 2017-04-07T10:00:00+01:00 10 notable digital marketing stats from this week Nikki Gilliland <p>Before we kick things off, remember that you can also download the <a style="font-weight: normal;" href="https://econsultancy.com/reports/internet-statistics-compendium" target="_blank">Internet Statistics Compendium</a> for lots more.</p> <h3>A third of B2B marketers are tracking sales from social</h3> <p>A new <a href="http://immediatefuture.co.uk/resource/b2b-report-what-has-social-media-ever-done-for-us/?utm_source=PR&amp;utm_medium=Msr&amp;utm_theme=&amp;utm_term=&amp;utm_campaign=B2B_Report17#sf_form_salesforce_w2l_lead_22" target="_blank">report by IF</a> has found that 33% of marketers are tracking sales through social media, with social platforms driving sales upwards of £50,000 per month. </p> <p>However, some B2B marketers are less adept at measuring social value, with 58% not rating their ability to measure social at all. More than one in 10 marketers also appear nonchalant about the benefits - 13% suggest that social media measurement is neither important or unimportant.  </p> <p>Senior marketers are much more optimistic, with 67% being confident that their ability to measure social will improve in the next two years, and 50% of them planning to increase resource and budget investment in the next 12 months.</p> <p><img src="https://assets.econsultancy.com/images/0008/5309/IF_report.JPG" alt="" width="780" height="480"></p> <h3>More marketing teams planning to restructure in 2017</h3> <p>An increasing number of marketing teams are restructuring to cope with technological challenges, according to new research by Technology for Marketing, the IDM and Pure360.</p> <p>In a survey, 33% of marketing teams said they expect to become more specialist in 2017, with just 3% becoming generalist in their expertise. However, just 12% of marketers said they exclusively ‘own’ the marketing technology they rely on, instead turning to partnerships with IT and external technology teams to get results. </p> <p>This highlights the need for restructuring, with marketing teams having to move away from all-purpose marketing managers towards specialist roles, agencies and freelancers.</p> <h3>UK consumers more trustworthy of familiar brands</h3> <p><a href="http://lp.outbrain.com/research-unconscious-content-bias-uk/?utm_source=press&amp;utm_campaign=research-content-bias&amp;utm_medium=pr" target="_blank">Outbrain suggests</a> that UK consumers place greater trust in familiar brands, with 77% of survey respondents citing them as a reliable source of information.</p> <p>In comparison, 67% say they trust content shared by their own friends on social media, while three in five people believe relevant content from even unfamiliar brands to be trustworthy.</p> <p>Research also shows that consumers place more trust in traditional publishers as opposed to social media or blogs, with two-thirds of respondents believing that content from the likes of The Guardian or The Sun is reliable.</p> <p><img src="https://assets.econsultancy.com/images/0008/5310/Outbrain.JPG" alt="" width="400" height="670"></p> <h3>Traffic to betting websites surge ahead of the Grand National</h3> <p>Hitwise has analysed the key data behind last years’ Grand National, looking at its demographic in comparison to other racing events.</p> <p>It found that betting websites saw a 35% increase in online traffic in the week of the race last year, with those searching for betting and racing sites most likely to be between the ages of 25 and 34.</p> <p>It also discovered that people who earn over £100,000 are 161% more likely to visit racing and betting sites in the week of Royal Ascot. Meanwhile, people aged 18-24 years old are most likely to visit Sky Bet over the week of Royal Ascot, whereas those aged 55 and over are more likely to choose At The Races.</p> <h3>37% of smartphone owners are using voice technology</h3> <p>According to a new report by <a href="http://www.mindshareworld.com/uk/about/speak-easy" target="_blank">Mindshare</a>, voice technology has the ability to drive a greater emotional connection with brands. </p> <p>A study carried out by Neuro Insight found that emotional activity was twice as high when consumers voiced a brand question rather than typing it out. People also find it much easier to use, as 50% less brain activity occurs when processing an answer delivered by voice.</p> <p>The technology is already becoming prevalent among smartphone users, with 37% using voice technology of some kind at least once a month and 18% using it at least weekly.</p> <p><img src="https://assets.econsultancy.com/images/0008/5312/SpeakEasy.JPG" alt="" width="599" height="357"></p> <p><em>Reasons for using voice technology</em></p> <h3>Aldi and Lidl are struggling to build shopper loyalty </h3> <p>An ICLP survey has revealed that Aldi and Lidl are struggling to build consumer loyalty despite an ever-growing market share. In a survey of over 1,000 people, 37% of Tesco shoppers and 34% of Sainsbury’s shoppers felt that their custom and loyalty was rewarded. In contrast, just 16% of people said the same for Lidl and just 9% for Aldi. </p> <p>Similarly, only one in four Brits believe that they get something back when they share their personal information with a supermarket. 52% of Sainsbury’s shoppers and 35% of Tesco shoppers said that they have benefited from sharing data, compared to 26% of Aldi shoppers, and 20% of Lidl shoppers.</p> <h3>UK retailers are failing to invest in AI and machine learning</h3> <p>A <a href="http://www.qubit.com/research/catalysts-of-change" target="_blank">Qubit report</a> on the future of retail tech suggests that the majority of brands are failing to invest in artificial intelligence, despite recognising its potential.</p> <p>While 82% believe that machine learning will have an impact on the retail sector, just 48% are currently using it in their business. As a result, 82% of companies are planning to invest less than £1m to introduce new tech, while 22% are planning to invest less than £50,000. </p> <p>Effective data collection appears to be hindering AI, with just a third of retailers having a strategy to collect and analyse data across all their channels. </p> <p><img src="https://assets.econsultancy.com/images/0008/5311/Qubit.JPG" alt="" width="588" height="618"></p> <h3>Digital performance of luxury brands is improving</h3> <p>Research by <a href="http://contactlab.com/en/more/reports/digital-competitive-map-march-2017/?step=step2" target="_blank">ContactLab</a> shows that there’s been a significant improvement in many luxury brand’s digital performance over the past year.</p> <p>The Digital Competitive Map found that Burberry still has the strongest digital presence of 32 international fashion and luxury brands, with Louis Vuitton and Gucci also remaining stable in comparison to the previous year.</p> <p>An overall 5% increase in the digital performance of 32 brands is said to be due to a focus on geographical localisation, a wider range of languages used on brand websites, and strong email campaigns. However, some are still lagging behind on social, with only half of the 32 brands using Instagram and only 10 having Snapchat accounts.</p> <h3>Consumer loyalty reduced by the threat of security breaches</h3> <p>A report by <a href="https://www.retail-week.com/analysis/retailers-face-losing-battle-in-fight-against-hackers/7019678.article" target="_blank">Retail Week and Cisco</a> has highlighted the impact of data breaches on both consumers and retailers.</p> <p>In a survey of 2,000 consumers, 72% said that they would be unlikely to do businesses with a company that has experienced a data breach. If their own personal data had been breached, nearly nine out of 10 respondents said they would reduce spend if the retailer did not take steps to quickly correct the problem.</p> <p>Lastly, only 9% of consumers would rule out taking legal action against a company if a data breach has occurred. However, 53% said they would definitely consider it and 38% would give it due consideration.</p> <p><img src="https://assets.econsultancy.com/images/0008/5308/Retail_Week.JPG" alt="" width="780" height="404"></p> <h3>US news consumption on the rise</h3> <p>Finally, a <a href="http://www.nielsen.com/us/en/insights/reports/2017/the-nielsen-total-audience-report-q4-2016.html" target="_blank">study by Nielsen</a> has found a rise in news consumption in the US. Consumers spent 73.5bn minutes consuming news content in the average week last year – an annual increase of 18%.</p> <p>Insight suggests that the rise is due to an ‘unrelenting flood of stories’ resulting from events like the presidential election. To put this into context, the typical consumer dedicated 18.5 hours to this activity a week in 2016, compared to just over 16 hours in 2012 when the last presidential election was held.</p> <p>National cable television has been the main beneficiary of the rise, claiming 20 additional minutes of weekly attention in the first month of this year compared with the average from last year as a whole.</p> tag:econsultancy.com,2008:BlogPost/68683 2017-01-09T10:33:22+00:00 2017-01-09T10:33:22+00:00 What can marketers learn from Amazon Go's customer experience? Nikki Gilliland <p>Shoppers are simply required to scan smartphones as they enter, leaving Amazon’s “just walk out” technology to detect exactly what’s being taken and charge it to their Prime accounts.</p> <p>It’s one of the first ever examples of a truly seamless customer experience - a trend that’s <a href="https://econsultancy.com/blog/68652-ecommerce-in-2017-what-do-the-experts-predict/" target="_blank">predicted to be big</a> in the world of ecommerce this year.</p> <p>So, what can we learn from the concept? </p> <p>Here’s a few factors for marketers to consider.</p> <h3>Getting out of the customer’s way</h3> <p>According to Amazon, the store uses a combination of “computer vision, deep learning algorithms and sensor fusion” to create a seamless experience for customers.</p> <p>The concept of walking into a store and out again without any interaction with employees or payments might sound alien – but it’s designed to make shopping as hassle-free as possible.</p> <p>It’s also the antithesis of many retail marketing strategies.</p> <p>Instead of interrupting customers as they use technology, or asking them to interact with the brand online (“like our Facebook page”), Amazon wants the technology to stay hidden (though you do need to have downloaded Amazon's app beforehand).</p> <p>From the success of companies like Uber and <a href="https://econsultancy.com/blog/68375-airbnb-how-its-customer-experience-is-revolutionising-the-travel-industry/" target="_blank">Airbnb</a>, it is obvious that customers crave this kind of hands-off approach. Likewise, they also favour utility and practicality over anything else. </p> <p>With brands that offer a value proposition based on ease and simplicity dominating their fields, Amazon Go aims to provide customers exactly that – without shouting about it.</p> <p><iframe src="https://www.youtube.com/embed/NrmMk1Myrxc?wmode=transparent" width="854" height="480"></iframe></p> <h3>Avoiding over-personalisation</h3> <p>By keeping track of the customer’s every move, Amazon Go will enable the brand to deliver more data-driven marketing than ever before.</p> <p>As customers, we’re used to waiving the right to privacy online, with the knowledge that brands draw on our browsing and buying behaviour in order to deliver targeted messages.</p> <p>In fact, this is now an expectation, with consumers desiring <a href="https://econsultancy.com/blog/68285-six-things-to-consider-when-implementing-personalisation/" target="_blank">greater personalisation</a> for an improved service. Think Spotify's curated playlists or Netflix's movie recommendations. </p> <p>For the first time ever, however, Amazon Go means consumers will waive their right to privacy while shopping in person. From what we put back on the shelf to the route we take while walking around the store – this information is all up for grabs.</p> <p>From a marketing perspective, this also means there is the temptation to over-egg personalisation to the point of being creepy. As a result, issues over consumer privacy could potentially be its downfall.</p> <p>Of course, retail stores have been attempting to track customers for a while, but past examples show that it’s not always accepted. US retailer Nordstrom was previously forced to stop using WiFi to monitor movement in physical stores due to uproar from customers. </p> <p>A few years down the line, will it be any different?</p> <p>Retailers do appear to be recognising that success lies in an intelligent and relevant use of data – not just blind targeting or technology for the sake of it.</p> <p>For Amazon Go, clever targeting executed in a non-intrusive way is the aim, but the question remains whether or not customers are ready and willing to accept it.</p> <p><img src="https://assets.econsultancy.com/images/0008/2835/amazon_go.jpg" alt="" width="650" height="433"></p> <h3>Altering brand perceptions</h3> <p>The Amazon Go experience does not simply end in-store. Data could be used to serve customers even more targeted offers and personalised recommendations on-site.</p> <p>This connection between the online and offline world is evidently another reason behind the ecommerce brand’s foray into retail. </p> <p>After all, a physical experience is often a much better way to create a human connection with customers - especially for a brand like Amazon, which doesn’t exactly offer the most emotionally engaging experience online.</p> <p>With a bricks-and-mortar store, it has the opportunity to break down customer expectations – namely that Amazon offers a single type of service – and reveal a completely new way of interacting with the brand.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Just finished my first trip to <a href="https://twitter.com/AmazonGoAmerica">@AmazonGoAmerica</a> !!! Looooved it!! Who's jealous??? <a href="https://twitter.com/hashtag/AmazonGo?src=hash">#AmazonGo</a> <a href="https://twitter.com/hashtag/Amazon?src=hash">#Amazon</a> <a href="https://twitter.com/hashtag/HappyAmazonian?src=hash">#HappyAmazonian</a> <a href="https://t.co/huRrtBUXHJ">pic.twitter.com/huRrtBUXHJ</a></p> — M (@ThusSpokeLadyM) <a href="https://twitter.com/ThusSpokeLadyM/status/808758908705587200">December 13, 2016</a> </blockquote> <h3>In conclusion…</h3> <p>Amazon’s cashier-free store is by no means a guaranteed success.</p> <p>Currently available for Amazon employees and due to open to the public in the near future – it is an experiment that could easily be shelved. </p> <p>However, it’s certainly an exciting development for the future of retail, and gives marketers an insight into how a seamless experience could lead to greater engagement and satisfaction from consumers.</p> tag:econsultancy.com,2008:BlogPost/68652 2016-12-22T09:50:00+00:00 2016-12-22T09:50:00+00:00 Ecommerce in 2017: What do the experts predict? Nikki Gilliland <p>If you’d like to learn more about ecommerce, book yourself into one of the following training courses from Econsultancy:</p> <ul> <li><a href="https://econsultancy.com/training/courses/fast-track-ecommerce-online-retailing/">Ecommerce and Online Retailing Training</a></li> <li><a href="https://econsultancy.com/training/courses/conversion-optimisation/">Conversion Optimisation - How to Deliver Digital Growth Training</a></li> <li><a href="https://econsultancy.com/training/courses/usability-and-persuasion-in-ecommerce/">Usability and Persuasion in E-commerce Training</a></li> </ul> <h3>Seamless customer experience</h3> <p><strong>Matt Curry, Head of Ecommerce at LoveHoney:</strong></p> <p>I think we'll be seeing a lot more zero-friction experiences. The recent announcement of Amazon Shop is a good example of this in the real world, but online we'll be doing everything we can to get out of the way of someone trying to order.</p> <p>Everything from seamless identification, automated intelligent orders, native payments in the browser and on IoT devices, to sites that customise their UI on the fly.</p> <p><img src="https://assets.econsultancy.com/images/0008/2533/Amazon_Go.JPG" alt="" width="650" height="456"></p> <h3>Data-driven marketing</h3> <p><strong>James Gurd, Owner of Digital Juggler:</strong></p> <p>I’m not going to get excited yet by IoT and VR – I know they’re already established in some markets, but I just can’t see mass adoption coming in the UK yet, and especially not in retail ecommerce. </p> <p>For me, marketing automation based on product lifecycles and user-level behaviour will become more and more apparent.</p> <p>We’ll see less bucket emails and more targeted communication, which has been happening over the past few years but at a slow rate.</p> <p>I think ecommerce specialists are growing in maturity and confidence, so data driven decision-making is becoming more of a norm, even though opinions and ‘it’s good practice’ do still influence many decisions.</p> <h3>Mobile rewards </h3> <p><strong>James Gurd:</strong></p> <p>Mobile payment still threatens to break free but it hinges on successfully integrating loyalty programs and rewards. </p> <p>So far brands like Starbucks have nailed it, and 2016 has seen some other high profile brands like Kohls push in this area. What’s lacking to make me confident 2017 is <em>the year,</em> is one of the big tech/payment companies resolving loyalty across a wide range of merchants.</p> <h3>Personalisation of shopper bots</h3> <p><strong>Depesh Mandalia, CMO of ToucanBox:</strong></p> <p>The emergence of bots and apps which provide a convenience shopping play will be a growing trend in 2017. Both Apple and Facebook are investing here with a view to enabling brands to deploy shopper bots that can create personalised recommendations.</p> <p>Personalisation has lacked an element of context in the past, but a bot could both dig deep into a customer's history and ask questions in real-time to better tailor products.</p> <p>While I can order items on my Amazon Echo, it doesn't yet have awareness of my history to better tailor my requests. Asking Echo "buy some vests for my son", it should ask contextual questions like 'how old?' or 'what size?', but should also check my browsing/purchase history to tailor those results.</p> <p>Having an in-home shopping assistant could be a huge advantage for retailers to connect in a more intimate manner with potential and new customers.</p> <p><img src="https://assets.econsultancy.com/images/0008/2529/Amazon_Echo.JPG" alt="" width="590" height="336"></p> <h3>Uptake of A/B testing</h3> <p><strong>Paul Rouke, founder &amp; CEO, PRWD:</strong></p> <p>The free-to-use Google Optimize is going to bring a significant increase in both the awareness (and uptake) of A/B testing amongst retailers.</p> <p>With this, my word of warning for retailers would be - when a tool is free, there is less value placed on the importance of having the correctly skilled people available to get the most out of the tool. </p> <p>A/B testing carried out intelligently (and even strategically), requires a multidisciplinary team with hypotheses underpinned by user research, data analysis and heuristics. </p> <p>Ensure that your business doesn’t end up with “all the gear, but no idea” when it comes to A/B testing in 2017.</p> <h3>Wearables</h3> <p><strong>Matt Curry:</strong></p> <p>Now that Mobile is by far the largest driver of traffic and revenue, we have to presume the next device type will be wearables.</p> <p><img src="https://assets.econsultancy.com/images/0008/2528/wearables.jpg" alt="" width="650" height="433"></p> <h3>The re-invented HIPPO </h3> <p><strong>Paul Rouke:</strong></p> <p>An increasing amount of humility being exhibited by retailers, as they evolve to becoming customer-centric. </p> <p>The re-invented <a href="https://econsultancy.com/blog/68080-it-s-time-to-reinvent-the-hippo" target="_blank">HIPPO </a>characteristics will continue to be harnessed by businesses and individuals as egotism, opinion and “what competitors are doing” are slowly removed from decision making around how we improve our user experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/2530/HIPPO.JPG" alt="" width="544" height="303"></p> tag:econsultancy.com,2008:BlogPost/68590 2016-12-02T10:31:15+00:00 2016-12-02T10:31:15+00:00 10 dazzling digital marketing stats from this week Nikki Gilliland <p>This week’s roundup is unashamedly festive, with news about Christmas shopping, social media conversation, consumer trust and more.</p> <p>Don’t forget to download the <a href="https://econsultancy.com/reports/internet-statistics-compendium">Internet Statistics Compendium</a> for more trusty insight.</p> <h3>85% of UK consumers to buy half of their Christmas gifts online</h3> <p>With <a href="https://econsultancy.com/blog/68587-black-friday-cyber-monday-2016-ecommerce-stats-bonanza/" target="_blank">Black Friday and Cyber Monday</a> out of the way, Tryzens has revealed that the majority of UK consumers will shop for Christmas online this year.</p> <p>A survey found that 85% of UK consumers will buy at least half their gifts online, while 56% will shop via their smartphones and tablets.</p> <p>22% of people are also reported to have started their Christmas shopping in October and 33% in November.</p> <p>Lastly, a very eager 5% started way back in January 2016.</p> <h3>Over 50% of top UK sites use at least one content recommendation engine</h3> <p>The New Yorker recently stopped using <a href="http://www.8ms.com/2014/02/20/rise-content-recommendation-engines/" target="_blank">content recommendation engines</a> – or monetization platforms known for their 'Around the Web' suggestions – due to allegations that they potentially support questionable content.</p> <p>However, SimilarTech has found that they are in widespread use both in the UK and US.</p> <p>Over 50% of top media sites in the UK use one or more them, and 75 out of 100 biggest online publications do the same.</p> <p>In fact, going against the assumption that they are going out of favour, the number of sites using content recommendation engines appears to be growing.</p> <p><img src="https://assets.econsultancy.com/images/0008/1992/Number-of-Sites-Using-Taboola-and-Outbrain---Top-10k-sites.png" alt="" width="750" height="364"></p> <h3>Christmas conversation hits social peak on 1st December</h3> <p>New insight from Carat UK suggests we’re less excited about Christmas this year, with a 5% decrease of Christmas mentions on Twitter.</p> <p>However, while figures suggest that 45% of people start to feel excited about Christmas ahead of December, it only become socially acceptable to start posting from 1st December, demonstrated by the fact that Christmas tweets increased by a whopping 65% on the same day last year.</p> <p>As a result of the collective excitement on 1st December people start planning which gifts to buy people, though 46% of shoppers are said to leave present buying to the second half of the month.</p> <p><img src="https://assets.econsultancy.com/images/0008/1991/Social_Christmas.JPG" alt="" width="710" height="385"></p> <h3>Delivery options to determine choice of retailers</h3> <p>According to Shutl, retailers need to rely on more than reputation to ensure sales this Christmas.</p> <p>In a survey of 1,070 online shoppers, 95% said they would consider going to another retailer if a site couldn’t offer a delivery that suited their needs. Likewise, 41% said they’d definitely shop elsewhere if the last mile delivery wasn’t right for them.</p> <p>With 42% of shoppers having higher online delivery expectations than in 2015, the pressure for retailers is on.</p> <h3>Married male millennials are the most engaged consumers, apparently</h3> <p>A study by Affinion has delved into the engagement levels of consumers all over the world.</p> <p>In a Customer Engagement Score of between one and 100, millennials were found to have the highest.</p> <p>Those that were married also reported higher engagement levels, with an average score of 67 compared with 64 in singletons.</p> <p>Likewise, males are the most engaged gender, reporting a stronger bond with their banks and mobile phone providers.</p> <h3>M&amp;S named as the UK’s favourite Christmas shop</h3> <p>New research from Rakuten Marketing has revealed that Marks &amp; Spencer is officially the nation’s favourite Christmas shop, with nearly a third of Brits planning to spend the most there this December.</p> <p>In second position is Boots, and despite a <a href="https://econsultancy.com/blog/68484-the-top-10-most-shared-christmas-ads-of-all-time" target="_blank">strong advertising presence at this time of year,</a> John Lewis comes in third.</p> <p>The survey found that just 27% of British consumers make gift purchase decisions based on a brand’s Christmas TV ad campaign. Instead, 33% say they use retailer websites to source information, and 31% say recommendations from family and friends.</p> <p><img src="https://assets.econsultancy.com/images/0008/1994/M_S.jpg" alt="" width="700" height="466"></p> <h3>31% of shoppers abandon baskets due to complicated payment processes</h3> <p>In a survey of 1,000 UK adults, PPRO Group has discovered that online merchants are failing to offer customers their preferred payment option, resulting in 31% of consumers <a href="https://econsultancy.com/blog/67120-12-ways-to-reduce-basket-abandonment-on-your-ecommerce-site/" target="_blank">abandoning purchases at the checkout</a>.</p> <p>The survey also found that, this Christmas, 61% of consumers will be buying gifts online at home while watching TV, while 13% will shop from their smartphones while lying in bed.</p> <p>Bad news for employers - 17% also admit they will be buying their Christmas gifts online while at work.</p> <h3>UK sees higher online conversation rates than US </h3> <p>The Ecommerce Quarterly report from Monetate has revealed that UK retailers are faring better when it comes to online conversions.</p> <p>It found that the UK is converting more than the US for the second year in a row, taking into account figures from both 2015 and 2016.</p> <p>What’s more, while add-to-basket rates have dropped in the US, the UK’s has steadily increased. </p> <p>Average order value also saw month-on-month improvement in the UK throughout the last year.</p> <p><img src="https://assets.econsultancy.com/images/0008/1993/Monetate.JPG" alt="" width="780" height="142"></p> <h3>User-generated content results in greater consumer trust</h3> <p>A new report by Olapic has found that user-generated images are much more likely to generate consumer trust than those created by marketers.</p> <p>In a survey of more than 4,500 active social media users in the US and Europe, 46% of people said they would place trust in user generated content, with just 27% saying they’d trust content created by brands. Only 5% said they would trust straight-forward advertising. </p> <p>In terms of the preferred forms of user generated content, 52% cited photos as the best, ahead of 27% for video and 12% for written content.  </p> <p><img src="https://assets.econsultancy.com/images/0008/1995/Starbucks_UGC.JPG" alt="" width="750" height="479"></p> tag:econsultancy.com,2008:BlogPost/68587 2016-12-01T14:56:00+00:00 2016-12-01T14:56:00+00:00 Black Friday & Cyber Monday 2016 ecommerce stats bonanza Nikki Gilliland <h3>Black Friday 2016 breaks US online sales records</h3> <p>Adobe has revealed that this year’s Black Friday shopping frenzy broke online sales records in the US, with $3.34bn being spent online and a 17.7% increase on sales last year.</p> <p>It also found that retailers who invested in mobile, email and social saw 30% more sales on average than those concentrating on just one or two channels.</p> <h3>Black Friday traffic up 220% on a normal day</h3> <p>Confirming the success of this year’s event is Qubit, which has analysed more than 50m visits from 120 UK and US retailers to discover how consumers reacted.</p> <p>The results show a huge increase in both traffic and revenue.</p> <p>When comparing Black Friday to a normal Friday, it found traffic was up 220%. Similarly, traffic increased 155% on Cyber Monday when compared to a normal sales day.</p> <p>The same goes for revenue, which was up 240% and 380% on the Friday and Monday respectively.</p> <h3>Lego is the top-selling toy</h3> <p>Adobe’s results from Black Friday show that Lego is still a hot favourite this festive season, with Lego Creator Sets coming out as the top-selling toy.</p> <p>This was closely followed by Razor electric scooters, Nerf guns, DJI Phantom Drones and Barbie Dreamhouse. </p> <p>With items under $300 being 20% more likely to sell out, this gives us a good indication of the toys parents need to snap up if they still want to get them in time for Christmas.</p> <p>The five bestselling electronics from Black Friday were Apple iPads, Samsung 4k TV’s, Apple’s MacBook Air, LG Televisions and Microsoft Xbox.</p> <p><img src="https://assets.econsultancy.com/images/0008/1970/Lego.JPG" alt="" width="536" height="345"></p> <h3>Travel companies see greater interest than in 2015</h3> <p>Data from Sojern shows that consumers spent more on travel this year than last, specifically taking advantage of Cyber Monday.</p> <p>On the Monday, there were 32% more searches for flights from the US compared to the week before. </p> <p>Similarly, while 2015 saw an increase in bookings of 9%, this Cyber Monday resulted in a jump of 21%.</p> <p>Out of the most searched for destinations, Italy, Japan and Colombia were in the top 10, while Canada, Haiti and US Virgin Islands were among the most-booked.</p> <h3>Consumers embrace mobile shopping</h3> <p>According to PayPal, Black Friday demonstrated the enormous growth of mobile shopping and its popularity with consumers.</p> <p>On Black Friday, one third of all PayPal payments were made on mobile devices, as PayPal handled $15,507 in payments per second.</p> <p>Cyber Monday resulted in similar activity, with PayPal seeing over 50% year-on-year growth in global mobile payments.</p> <p>Based on the data, it is also expecting more than 40% year-on-year growth in total payments.</p> <p><img src="https://assets.econsultancy.com/images/0008/1972/mobile_shopping.jpg" alt="" width="700" height="370"></p> <h3>Brits more confident in shopping on mobile</h3> <p>While results show that mobile overtook desktop as the most preferred shopping channel overall, data from ChannelAdvisor suggests that Brits are more at ease than US shoppers when it comes to following through on mobile purchases.</p> <p>Throughout the five-day sales period, 75% of shopping searches in the US took place on mobile devices, however, mobile accounted for less than one in two purchases.</p> <p>Meanwhile, despite the percentage of UK shopping searches on mobile platforms being slightly lower, more than three in five sales conversions took place on mobile.</p> <h3>1.2m app installs on Black Friday</h3> <p>Continuing the mobile trend, it seems there was a significant increase in retailers targeting consumers via mobile apps this year.</p> <p>According to Urban Airship, retailers sent 56% more holiday notifications in 2016 than in 2015.</p> <p><img src="https://assets.econsultancy.com/images/0008/1966/App_notifications.png" alt="" width="624" height="469"></p> <p>The big difference this year was retailers embracing targeting, with 88% of notifications being highly targeted to shopper’s locations, preferences and behaviours. Only 12% of messages were broadcast to everyone.</p> <p>The data also shows daily app installs averaged more than 696,000 per day in November, up 24% from the average daily rate in October. </p> <p>On Black Friday itself, there was a peak of more than 1.2m app installs.</p> <h3>Gilmore Girls generates more excitement than Black Friday on social</h3> <p>The latest data from Spredfast shows that there was a huge increase in noise around Black Friday this year, with the event racking up 2.4m mentions on social media - over 1m more than in 2015.</p> <p>However, insight suggests this could be due to more interactions on social overall, rather than direct interest in the shopping event.</p> <p>Despite Black Friday trending in many of these countries last year, the hotly anticipated return of Gilmore Girls, and the hashtag #GilmoreGirlsRevival, came out on top in France, Italy, New Zealand, Ireland and Germany.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">When everyone is hyped for black friday but you've been waiting 9 yrs for this day and it's because the <a href="https://twitter.com/GilmoreGirls">@GilmoreGirls</a> revival is today!!</p> — frayadawe (@frayadawe44) <a href="https://twitter.com/frayadawe44/status/802047855955505152">November 25, 2016</a> </blockquote> <h3>Rise in footfall to UK high streets</h3> <p>Springboard has analysed where UK consumers did their shopping on Black Friday, measuring both online sales and footfall in high streets and retail parks.</p> <p>It found that, while online transactions rose on Saturday by 1.9%, they had dipped by 5.5% on Sunday compared to last year. Footfall also dipped by 0.6%.</p> <p>In terms of the entire weekend, online transactions rose by just 2.3%. </p> <p>Footfall declined by 0.5%, however the 1.4% uplift in footfall to high streets apparently demonstrates the increasing importance of leisure-based trips to retail destinations.</p> <p><img src="https://assets.econsultancy.com/images/0008/1967/Footfall.JPG" alt="" width="780" height="176"></p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/68432-black-friday-2016-how-are-uk-retailers-optimising-search-landing-pages/"><em>Black Friday 2016: How are UK retailers optimising search landing pages?</em></a></li> <li><a href="https://econsultancy.com/blog/68573-seven-examples-of-black-friday-email-marketing-from-retailers/"><em>Seven examples of Black Friday email marketing from retailers</em></a></li> <li><a href="https://econsultancy.com/blog/68577-the-whisky-exchange-increased-prices-on-black-friday-did-it-work/"><em>The Whisky Exchange increased prices on Black Friday: Did it work?</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68423 2016-10-21T11:45:54+01:00 2016-10-21T11:45:54+01:00 How fashion and travel are leading the way in m-commerce Gregory Gazagne <p><a href="http://www.deloitte.co.uk/mobileuk/">Deloitte’s Mobile Consumer Survey</a> found that UK citizens look at their smartphones over a billion times a day, declaring that “no other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to.”</p> <p>Around the same time in late September the IAB released its ‘<a href="http://www.businesswire.com/news/home/20160927005394/en/Three-Quarters-Mobile-Users-World-Purchases-Smartphones-Tablets">Mobile Commerce: A Global Perspective</a>’ survey, which found that three-quarters (75%) of smartphone and tablet users say they have purchased a product or service on their smartphone or tablet in the past six months, and nearly a quarter (23%) buy on mobile devices on a weekly basis.</p> <p>As the retail industry rapidly adapts to mobile usage, at Criteo we’re able to analyse millions of online sales in real time, on all devices and from thousands of brands across all industries.</p> <p>With this front-row seat to the very latest in mobile commerce, we’re especially interested in looking at the way different retail industries are keeping pace with the rate of change.</p> <p>Because of the specific challenges facing them, we’ve seen that the fashion industry in particular is blazing a trail in smartphone targeting, including cross-channel strategies, and travel is making its mark by providing superior customer experience/ better conversions via apps.</p> <p>What’s driving these industries to lead in these areas – and what can others learn from them?</p> <h3><strong>The rise of the ‘Smartphonista’</strong></h3> <p>Last month’s New York-London-Milan-Paris Fashion Weeks saw the <a href="https://www.theguardian.com/commentisfree/2016/sep/30/us-vogue-editors-ridiculous-fashion-shows-changed-bloggers">old guard of print fashion journalism clash with the fashion world’s new digital influencers</a>, who rely on blogging platforms and Instagram to communicate with their thousands of followers.</p> <p>Their argument is symptomatic of a wider trend: that smartphones are revolutionising the way the fashion industry markets and sells its wares, and this is causing headaches for traditional media – but driving strong results on digital channels.</p> <p>According to Criteo <a href="http://www.criteo.com/resources/fashion-flash-report-2016/">data</a>, clothes have quickly become the premier mobile purchase in the UK, with 55% of online fashion purchases now being made through mobile (smartphones or tablets), and four out of 10 of all fashion purchases in the UK being made through smartphones.</p> <p>This makes fashion shoppers that purchase on smartphones (who we’ve coined ‘Smartphonistas’) a particularly valuable audience for fashion retailers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0592/criteo_slide.png" alt="" width="800"></p> <p>Mobile is perfect for this kind of off-the-cuff purchase, allowing consumers to browse flash sales on their phone, shop while watching TV, or buy an article of clothing on a whim.</p> <p>In addition to impulse, these purchases can also be driven by social connections and social influence (as evidenced by the rise of the fashion bloggers so vilified by Vogue).</p> <p>Social media – particularly Snapchat, Instagram and Pinterest – appears to strongly influence clothing purchases on mobile.</p> <p>Heavy Snapchat users are 139% more likely to buy clothes on mobile than the average Brit, while heavy Instagram (113%) and Pinterest (83%) users are also much more likely than average to buy clothing on mobile, according to <a href="http://www.criteo.com/resources/a-portrait-of-mobile-performance/">Criteo’s Portrait of Performance report</a>.</p> <p>Despite all this, acquiring new fashion customers is notoriously hard.</p> <p>What’s more, it can take several purchases before a customer earns you a profit, and turning new customers into loyal buyers takes finesse.</p> <p>In response to these challenges, fashion retailers are starting to recognise what products drive the best response on what device.</p> <p>For example, fashion shoppers favour small screens for low-risk items (T-shirts etc.) and products they don't need to try on (e.g. accessories).</p> <p>In addition, the new breed of Smartphonistas often use multiple devices on the path to purchase, so retailers are starting to track more effectively across devices in order to send the right message to the right person, at the right time.</p> <p>Nadya Birca, Senior Digital Marketing Manager at New Look told us that the key to successfully engaging with the Smarphonista is to recognise that he or she expects a truly cross-channel experience:</p> <p>“With mobile usage soaring in the UK, the experience we’re aiming to deliver on mobile is significant for our interactions with customers both on- and off-line.</p> <p>"When browsing on mobile we shouldn’t expect users to purchase straight away - allowing them a seamless navigational exploration, and later consideration experience, is what should drive any mobile commerce business focus.”</p> <h3><strong>Destination App</strong></h3> <p>As the 36th annual <a href="http://wtd.unwto.org/en">World Tourism Day</a> reminded us at the end of last month, the tourism industry continues to drive positive social, cultural, political and economic impacts worldwide.</p> <p>In many countries, including the UK, the travel industry is feeling the positive impact of the rise of smartphone use.</p> <p>Criteo’s latest Travel Flash Report shows that one in five Brits now browse for travel options on their mobile phones, and close to one-third of online travel bookings worldwide took place on mobile devices in Q2 2016 (up 24% from the year before).</p> <p>During the same period, smartphones captured nearly one in five online travel bookings.</p> <p>But that’s not all – the travel industry, more than most other verticals, is seeing particular success when it comes to mobile apps.</p> <p>According to our data, with investment in in-app tracking and advertising, committed travel advertisers are seeing a surge of bookings made from apps.</p> <p>Apps generated 57% of mobile bookings in Q1 2016, up from 40% in Q3 2015.</p> <p>Over the past two years, travel brands that invested in their apps saw constant growth in app bookings from 12% to now over half of all mobile bookings. </p> <p>For one-night stays, apps have a clear lead over other devices or platforms, with nearly three in four app bookings made for one-night stays.</p> <p>The most effective travel mobile strategies encourage app installs with services that really make a difference:</p> <ul> <li>Personalising recommendations based on searches, selection criteria, past travels and wish lists</li> <li>Sending up-to-date, useful and non-intrusive notifications (e.g., check-in reminders, traffic, delays, alternatives, cancellation, nearby offers)</li> <li>Offering better deals on your app to temporarily capture downloads and bookings, but be consistent to sustain them</li> <li>Enabling one-click bookings with intelligent auto-fill of personal details (while highlighting payment security)</li> </ul> <p>App bookings are on a roll, and we can see that merchants who invested in and promoted apps early are now reaping the benefits. </p> tag:econsultancy.com,2008:BlogPost/67639 2016-03-21T13:56:21+00:00 2016-03-21T13:56:21+00:00 Five tips for retailers targeting international expansion Georges Berzgal <p>In recent years, brands such as British fashion etailer <a href="http://www.retailgazette.co.uk/blog/2016/01/asos-buoyed-by-international-sales-growth">ASOS</a> or German discount supermarket chain <a href="http://www.internationalsupermarketnews.com/news/22598">Lidl</a> have successfully propelled themselves onto the global stage.</p> <p>British fashion label SuperDry has driven an aggressive growth strategy in markets including Europe, the US, Canada and Mexico and made it look relatively easy. <a href="http://www.theguardian.com/business/2015/jul/09/supergroup-embarks-on-china-expansion">With further expansion planned across Europe in the next 12 months and its recent step into China</a>, the retailer is showing no signs of slowing down.</p> <p>But, successful internationalisation is by no means simple. Performing well within your core market is not enough to guarantee success outside of it. There are many challenges associated with expansion, from <a href="https://econsultancy.com/blog/63880-eight-cultural-differences-that-impact-conversion/">understanding the cultural norms of a new market</a> to adapting to individual preferences.</p> <p>So, for retailers that want to follow in the footsteps of the likes of SuperDry and ASOS, here are the key tips to keep in mind when embarking on internationalisation.</p> <p><em>ASOS France</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3095/Screen_Shot_2016-03-17_at_17.35.49.png" alt="asos france" width="615"></p> <h3>Crawl, walk, run</h3> <p>A gradual approach to expanding internationally is most often the best, especially if you need to build a business case for a broader strategy.</p> <p>As a first step, you can make international shipments available from your home market. However, at this early stage you will need to consider how you will ship your products, accept various payment methods, and <a href="https://econsultancy.com/blog/64291-what-you-should-know-about-ecommerce-in-russia/">comply with tax and other local laws</a>.</p> <p>One option is to outsource all elements to suppliers such as Borderfree - from getting your site ready, to currency conversion to accepting payments, through to logistics and compliance with import and local tax laws.</p> <p>Using this approach will enable you to identify the potential of various markets and key challenges (e.g. differing tastes and merchandising, organisational realignment, new ecommerce platforms to support scaling) and allow you to adjust the strategy accordingly.</p> <h3>Set up a clear hub</h3> <p>Once the decision to go beyond direct-to-consumer shipment (from the home market) has been made, the most common next step is to establish a central hub to provide stability and foundation for further growth.</p> <p>For US-based companies trying to enter Europe, the most convenient hub is often the UK as most of the underlying factors that make the retailer successful in the US will be closely matched. It doesn’t mean there aren’t differences, but factors such as language, culture and even preferences will be similar. This gives geographical presence in Europe, which brands can use as a platform to extend to other countries.</p> <p>Alternatively, some companies have opted to establish a presence on the continent as an early hub; most common is Benelux, due to accommodating tax laws, their proximity to other European countries for logistics, and the presence of a future workforce with experience of building international businesses.</p> <p><em>Rotterdam, a central European hub for shipping</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3096/rotterdam.jpeg" alt="rotterdam" width="259" height="194"></p> <h3>Identify quick wins</h3> <p>Quick wins give confidence and create momentum, so once the hub is established, look for the relevant markets that are small enough to adapt to quickly.</p> <p><a href="http://ecommercenews.eu/cross-border-ecommerce-in-the-nordics-grows-steadily/">Countries where consumers regularly purchase online from foreign brands, such as the Nordics, Benelux and Cyprus,</a> should be considered for early success. For UK-based companies, other English-speaking countries tend to provide a more simple entry point.</p> <p>Online traffic data offers valuable insight into where the customers shopping in your ecommerce store are based outside of your core market. Use this data to pinpoint where to go first. As they are already engaged with the brand, expansion into these countries should be more straightforward.</p> <p>Additionally, ecommerce data will show previous purchase patterns and preferences, which must be used to create engaging offers for the local customer.</p> <h3>Recognise different shopping behaviour</h3> <p>Just as each customer has individual shopping preferences and demonstrates different behaviour, the same applies to markets.</p> <p>One mistake many brands make when trying to expand in Europe is treating it as one whole market instead of many individual ones. Cultures differ hugely from country to country, and this is reflected in consumer shopping behaviour. Applying a one-size-fits-all approach isn’t going to work as the brand continues to grow.</p> <p>Taking time to understand the consumers of a market at the start will serve you well in the long run.</p> <p>For instance, whilst <a href="http://www.chainstoreage.com/article/mom-and-pops-are-cool-again">mom-and-pop stores enjoy a resurgence in the US</a>, they have almost completely disappeared from the UK market. Catalogue purchases are still very popular amongst German consumers, compared with other European countries, and <a href="http://qz.com/262595/why-germans-pay-cash-for-almost-everything/">credit cards aren’t used so frequently with customers preferring more traditional methods such as pay by invoice or cash on delivery</a>.</p> <p>It is vital to understand the nuances, adapt on a market-by-market basis and realise that markets will require differing levels of investment.</p> <p><em>2013 chart via Globalmaxer showing German payment preferences</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0004/0510/german_payment-blog-half.png" alt="german payments" width="300" height="231"></p> <h3>Be flexible and ready to adapt  </h3> <p>Internationalisation is not something that will happen overnight, nor is it always likely to follow the path originally set out. Approach it as a long-term investment and be prepared to act in an agile manner.</p> <p>If your current strategy isn’t working you must be willing to change tack or, in some cases, step back altogether. The investment horizon will vary by market and some will take a lot longer to become established in than others. Keeping close to customer data will help detect developments in the market and identify where changes need to be made.</p> <p>But with technology becoming more sophisticated, successful expansion is easier than ever to achieve.</p> <p><em>For more on this topic, read <a href="https://econsultancy.com/blog/66575-five-golden-rules-when-localising-for-international-ecommerce/">Five golden rules when localising for international ecommerce</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67534 2016-02-19T12:51:23+00:00 2016-02-19T12:51:23+00:00 From checkout to conversion: How to prevent basket abandonment Georges Berzgal <p style="text-align: justify;">Whether the customer is shopping in-store or online, a poor <a href="https://econsultancy.com/reports/customer-experience-statistics/">customer experience</a> is likely to result in an <a href="https://econsultancy.com/blog/63466-nine-case-studies-and-infographics-on-cart-abandonment-and-email-retargeting/">abandoned basket</a>.</p> <p style="text-align: justify;">So, how can you prevent valuable online customers from straying from their shopping baskets?</p> <h3 style="text-align: justify;"><strong>1. Keep it clear and simple</strong></h3> <p style="text-align: justify;">Many customers are time poor, easily distracted, and perhaps most notably, have a wide-range of other brands vying for their attention.</p> <p style="text-align: justify;">A complex or lengthy checkout process could send them running to your competitor. Today’s <a href="http://www.netimperative.com/2015/12/clunky-checkouts-causing-online-retail-woes-infographic/">average checkout process is five pages long.</a></p> <p style="text-align: justify;"><em>Wiggle's checkout</em></p> <p style="text-align: justify;"><img src="https://assets.econsultancy.com/images/0007/2149/wiggle_checkout.png" alt="" width="615" height="326"></p> <p style="text-align: justify;">Too many steps will frustrate the customer, which may result in an abandoned basket and lost revenue.</p> <p style="text-align: justify;">Implementing a step-indicator, which gives customers a clear view of their progress, will help manage their expectations during the entire process.</p> <h3 style="text-align: justify;"><strong>2. Minimise queuing time</strong></h3> <p style="text-align: justify;">Bricks and mortar shops try to prevent customers from waiting in a lengthy queue to make a purchase.</p> <p style="text-align: justify;">The same attitude must be applied online. A ‘<a href="https://econsultancy.com/blog/65457-be-our-guest-a-guide-to-ecommerce-guest-checkout-best-practice/">guest checkout</a>’ option reduces processing time, enabling customers to complete the purchase without being required to register or set up an account.</p> <p style="text-align: justify;">A third (33%) of retailers don’t offer this, which has a direct impact on the number of sales they convert.</p> <p style="text-align: justify;">Of course, capturing customer data via registration is important to enable engaging communications and personalised offers in the future.</p> <p style="text-align: justify;">You should consider presenting both options and offer incentives for customers to complete the longer registration process.</p> <h3 style="text-align: justify;"><strong>3. Avoid last minute, unexpected surprises</strong></h3> <p style="text-align: justify;">At this critical stage in the customer journey, you should do everything to encourage the sale, and avoid presenting the customer with any unexpected costs at the last minute.</p> <p style="text-align: justify;">The continued growth of promo codes, providing free shipping or money off, are <a href="http://www.retailgazette.co.uk/blog/2015/03/23041-voucher-code-use-grows-43-in-12-months">a powerful way to encourage customers to purchase.</a></p> <p style="text-align: justify;">Reduce the risk of disappointment at checkout by allowing customers to apply codes early in the process. This may also create additional revenue as customers realise they can get more for their money.</p> <p style="text-align: justify;"><em>Mulberry's single page checkout</em></p> <p style="text-align: justify;"><img src="https://assets.econsultancy.com/images/0007/2151/Mulberry_s_single_page_checkout.png" alt="" width="615" height="635"></p> <p style="text-align: justify;">You also need to avoid exposing customers to sticker shock. More than a third (38%) of online retailers are guilty of this.</p> <p style="text-align: justify;">Hitting customers with total costs at the end of the checkout process could put them off the purchase if the price is higher than they expected.</p> <p style="text-align: justify;">Whilst the majority of retailers display shipping costs on the first or second page of checkout, there remain a few who still don’t reveal the rates until page five.</p> <p style="text-align: justify;">Display a preview of the shopping basket and associated costs, including shipping costs, as early as possible during the checkout process and provide the opportunity to adjust their preference.</p> <h3 style="text-align: justify;"><strong>4. Remind customers what they are missing</strong></h3> <p style="text-align: justify;">There are many other reasons shoppers may abandon their shopping basket, and even if you address the majority you will still face abandoned baskets.</p> <p style="text-align: justify;">However, that does not mean the sale is lost. Commerce marketing automation makes it much easier to follow up with the customer to re-engage them.</p> <p style="text-align: justify;">Sending <a href="https://econsultancy.com/blog/64167-basket-abandonment-emails-why-you-should-be-sending-them/">automated abandoned basket messages</a> is an effective way to recapture the customer’s interest and remind them why they visited your site in the first place.</p> <p style="text-align: justify;">In fact, a basket reminder strategy can recover <a href="http://www.essentialretail.com/essential-ecommerce/article/566a9cf6c983b-third-of-retailers-dont-offer-guest-checkout-leading-to-basket-abandonment">as much as 25% of abandoned revenue</a>. Yet, a surprisingly high number of retailers (59%) don’t do this at all.</p> <p style="text-align: justify;">A small number (22%) send only one reminder, even though experience shows that a series of messages is more effective.</p> <p style="text-align: justify;">If you keep customers happy at checkout, and personalise the messages to those that abandon their baskets, you can go a long way toward becoming the retailer that customers come back to again and again.</p> tag:econsultancy.com,2008:BlogPost/66778 2015-08-03T10:41:23+01:00 2015-08-03T10:41:23+01:00 Why Apple Pay offers brands more than just another payment channel Georges Berzgal <p>In practical terms, this means users can pay by simply holding their device near a payment terminal in-store and authenticating the purchase with their Touch ID.</p> <p>Even purchasing on a mobile device is made simpler by enabling consumers to pay and authenticate with their fingerprint or passcode without having to enter their card number or leave the app.</p> <p>Adding this new functionality to the device that most consumers have on their person at all times is incredibly convenient. But what does Apple Pay offer to brands and consumers beyond just another way to pay?</p> <h3><strong>E-receipts</strong></h3> <p>This is more than just a standard proof of purchase. Customers who adopt new digital payment systems are much more likely to embrace a digital proof of purchase too, offering businesses an opportunity to continue to engage with them.</p> <p>For example, within an e-receipt brands can safely use up to 20% of the available space on an e-receipt for promotional content - whether that’s inviting consumers to interact on social channels, offering them promotions or other items they might like is up to the brand.</p> <p><img src="https://assets.econsultancy.com/images/0006/5787/Screen_Shot_2015-08-03_at_10.39.15.png" alt="" width="979" height="550"></p> <h3><strong>New era for loyalty</strong></h3> <p>As well as allowing people to pay with their mobile phone, Apple Pay is part of the new generation of m-payments services that will incorporate loyalty programmes.</p> <p>With Passbook being renamed as simply ‘Wallet’ in the latest iOS 9 update, users can now link their bank cards and loyalty programmes on their smartphone.</p> <p>This not only allows consumers to ditch some of the cards they currently carry around, but also helps retailers to better understand the consumer to increase customer retention and brand advocacy - ultimately influencing <a href="https://econsultancy.com/reports/customer-lifetime-value/">customer lifetime value</a>.</p> <h3>Improving in-app purchase experience</h3> <p>Apple has simplified in-app purchasing by allowing consumers to make a purchase with a fingerprint, and reports suggest that iOS developers have already seen <a href="http://www.cnet.com/news/apple-adds-retail-credit-and-loyalty-cards-renames-passbook-to-wallet/">checkout rates more than double for applications that include an Apple Pay option</a>.</p> <p>For brands, this is an opportunity to streamline the purchase experience for the increasing number of people that shop on their mobile.</p> <p><img src="https://assets.econsultancy.com/images/0006/5786/Screen_Shot_2015-08-03_at_10.38.52.png" alt="" width="1176" height="694"></p> <h3>Mobile social commerce</h3> <p>As well as streamlining in-app purchases, Apple is reportedly working with Pinterest on what has been described as <a href="https://econsultancy.com/blog/66529-pinterest-enables-ecommerce-with-buyable-pins/">‘Buyable Pins’</a>.</p> <p>Will this be the way to monetise the image-based social network? We’ll have to see, but it’s interesting that Apple Pay will be a part of social commerce.</p> <p>For marketers that use Pinterest already, this could be an interesting option to create ROI from their social media activity. </p> <p>Much has been about the benefits of Apple Pay. Those brands who look beyond m-payments as a simple means of facilitating payments can seize the opportunity to effectively connect their online and offline marketing in order to enhance <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences">customer experience</a> and drive revenue.</p>